CTFA

CTFA practice questions, page 25 of 35, with answer review and explanations.

Question 121

An order made by an account holder instructing the depository institution to refuse payment on an already issued check.

  1. Overdraft
  2. Stop payment
  3. Overdraft protection
  4. Checkbook ledger

Question 122

It is a check payable to a third party that is drawn by a bank on itself in exchange for the amount specified plus, in most cases, a service fee (of about $5).

  1. Cashier's check
  2. Traveler's check
  3. Certified check
  4. None of these

Question 123

Short-term interest rates generally fluctuate ______ long-term rates, so it pays to monitor interest rate movements, shop around for the best rates, and place your funds in savings vehicles consistent with your needs.

  1. More than
  2. Less than
  3. Equal to
  4. None of the above

Question 124

Many financial planning experts recommend keeping a minimum of ____ to _____ of your investment portfolio in savings-type instruments in addition t the 3 to 6 months of liquid reserves noted earlier. Someone with $50,000 in investment should probably have a minimum of $5000 to $12500.

  1. 10% to 15%
  2. 20% to 30%
  3. 10% to 25%
  4. 20%-25%

Question 125

This is a saving bond issued by various denominations by the U.S Treasury. These are backed by the U.S government and can be replaced without charge in case of loss theft or destruction.

  1. Series EE
  2. I Saving bond
  3. U.S. Treasury Bills
  4. CPI-U